BASIC OVERVIEWOF THE INCOTERMS® 2010 RULES

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This guide is designed to give you a quick overview of the Incoterms® rules frequently used worldwide in international and domestic contracts, illustrating responsibilities between buyer and seller for costs and risk, as well as cargo insurance.

”Incoterms” is a registered trademark of the International Chamber of Commerce.

Read more about Incoterms® rules from the official International Chamber of Commerce (ICC) website. You can also order the “Incoterms® 2010” publication and sign up for online training on the Incoterms® rules at www.iccwbo.org.

EXW Ex Works

FCA Free Carrier

FOB Free On Board (Ocean freight only)

CFR Cost and Freight (Ocean freight only)

CIF Cost Insurance and Freight (Ocean freight only)

CPT Carriage Paid To

CIP Carriage and Insurance Paid to

DAT Delivered at Terminal

DDP Delivered Duty Paid

named place of delivery

named place of delivery

named port of shipment

named port of destination

named port of destination

named place of destination

named place of destination

named terminal at port orplace of destination

named place of destination

“Co

llect

” te

rms

“Pre

pai

d”

term

s

Carrier's terminal at origin

Named Terminal Consignee's premises

Seller's premises

Loaded on board of vessel at port of origin

Unloaded from vessel at port

of destination

Carrier's terminal at origin

Named TerminalSeller's costConsignee's (buyer's) costSeller's riskConsignee's (buyer's) riskSeller's obligation to arrange cargo insurance

Legend

Basic overview of the Incoterms® 2010 rules

DAP Delivered at Place named place of destination

FAS Free Alongside Ship (Ocean freight only)

named port of shipment

EXW„Ex Works“ means that the seller delivers when it places the goods at the dispo-sal of the buyer at the seller‘s premises or at another named place (i.e., works,

collecting vehicle, nor does it need to clear the goods for export, where such clearance is applicable.

FCA„Free Carrier“ means that the seller delivers the goods to the carrier or another person nominated by the buyer at the seller‘s premises or another named place.

named place of delivery, as the risk passes to the buyer at that point.

FOB (applicable to ocean freight)„Free on Board“ means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods

goods are on board the vessel, and the buyer bears all costs from that moment onwards.

FAS (applicable to ocean freight)„Free Alongside Ship“ means that the seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the

when the goods are alongside the ship, and the buyer bears all costs from the moment onwards.

CFR (applicable to ocean freight)„Cost and Freight“ means that the seller delivers the goods on board the vessel

for and pay the costs and freight necessary to bring the goods to the named port of destination.

CIF (applicable to ocean freight)„Cost, Insurance and Freight“ means that the seller delivers the goods on board

must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

CPT„Carried Paid To“ means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties) and that the seller must contract for and pay the costs of carriage necessary to bring goods to the named place of destination.

CIP„Carriage and Insurance Paid“ means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between the parties) and that the seller must contract for and pay to costs of carriage necessary to bring the goods to the named place of destination.

DAT„Delivered at Terminal“ means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. „Ter-minal“ includes any place, whether covered or not, such as a quay, warehouse,

involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

DAP„Delivered at Place“ means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for un-

bringing the goods to the named place.

DDP„Delivered Duty Paid“ means that the seller delivers the goods when the goods are placed at the disposal of the buyer, cleared for import on the arriving

seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.Extracts published by arrangement with ICC through ICC Services- Publications from: Incoterms® 2010 • ICC Publication N° 715 (E) – ISBN 978-92-842-0080-1 Copyright © 2010 – International Chamber of Commerce (ICC) Available from the ICC Bookstore at www.iccbooks.com

Ocean freight

Air freight